JOHANNESBURG, Aug 12 – Shoprite Holdings expects annual headline earnings per share to increase by between 9.7% and 14.7%, as South Africa’s largest supermarket group continues to benefit from steady sales growth and expansion in its core grocery operations.
The retailer said merchandise sales from continuing operations increased 7.2% to approximately R270.8 billion ($16.7 billion) for the 52 weeks ended June 28, compared with R252.7 billion a year earlier.
Shoprite expects headline earnings per share from continuing operations to range between R14.98 and R15.66, compared with a restated R13.65 in the previous year. Diluted headline earnings per share are also expected to increase within the same range.
The earnings outlook reflects continued resilience in Shoprite’s core supermarket business, which remains the dominant contributor to group revenue.
Supermarkets South Africa, which accounted for 84.5% of group sales, increased revenue by 7.1% to R213.5 billion. Like-for-like sales, which exclude the impact of changes in the store network, increased 2%.
Price increases remained relatively contained during the period. Internal selling price inflation was 0.8%, well below South Africa’s 3.9% inflation rate for food and non-alcoholic beverages. The relatively limited price growth suggests that the retailer’s sales performance was not driven solely by higher prices.
Shoprite’s supermarket operations elsewhere in Africa also recorded growth. Sales outside South Africa increased 11% when measured in rand terms and 7.1% on a constant-currency basis, indicating continued expansion despite the impact of exchange-rate movements across its international markets.
The performance comes as African retailers navigate varying consumer conditions, currency movements and changes in household purchasing power. For Shoprite, the continued growth of its South African supermarket operations remains central to overall performance, while its broader African footprint provides an additional source of revenue growth.
Shoprite’s shares rose 5.19% to 0836 GMT following the earnings update, reflecting a positive initial market response to the stronger earnings outlook.
The retailer’s final annual results will provide further detail on profitability, cash generation and the performance of individual business segments. For investors, the balance between sales growth, subdued price inflation and expansion across African markets will remain important to Shoprite’s earnings trajectory.
